We must speak with one voice at 2025 G20 Summit to demand rules that reflect our realities — President Mahama urges African leaders on debt reform

President John Dramani Mahama has called on African nations to present a united front in demanding fairer global debt restructuring rules, warning that the continent’s economic sovereignty is at stake.

Speaking at the African Union High-Level Conference on Debt in Lomé on Monday, the president outlined an urgent roadmap for tackling Africa’s debt crisis while protecting social investments.

President Mahama stated that Africa’s fragmented approach to debt negotiations has left the continent vulnerable.

“The G20 Common Framework remains slow and creditor-driven,” he said, revealing that only three of five African nations seeking relief under the mechanism had seen progress.

He pressed for immediate reforms, including standardised debt reporting across AU member states and full activation of the Pan-African Payment and Settlement System to reduce dependence on foreign currencies.

“We must speak with one voice at the 2025 G20 Summit to demand rules that reflect our realities,” he said.

The president stressed that fiscal reforms must not come at the expense of development, noting Ghana’s commitment to shield education and youth programs from budget cuts.

“We are establishing an independent fiscal council to bring transparency to debt management,” he said, while announcing plans to expand the Ghana Infrastructure Investment Fund to attract private financing for projects.

Africa’s debt crisis took center stage as President Mahama shared alarming data, saying, the continent spent $90 billion servicing debts in 2024 which is nearly double its foreign aid receipts, with 22 countries now at high risk of distress.

“When debt payments exceed combined health and education budgets, we have crossed into dangerous territory,” he said, adding that sub-Saharan Africa’s average debt-to-GDP ratio would surpass 60% this year.

Drawing from Ghana’s recent $5.4 billion debt restructuring deal, the president emphasized lessons for the continent.

“Our debt-to-GDP ratio ballooned from 56% to 91% in six years due to global shocks,” he noted, adding that interest payments had consumed 47% of government revenue by 2023.

“Delayed engagement with creditors compounds crises – we learned this the hard way.”

President Mahama proposed innovative solutions including debt-for-climate swaps and green bonds, citing Barbados as a model.

He criticised vulture funds for derailing restructuring efforts and lamented the slow disbursement of pledged Special Drawing Rights.

“The $100 billion SDR promise to Africa remains largely unfulfilled while our economies struggle,” he said.

Concluding with a rallying cry, the President reframed the debt debate. “This is not about begging for relief, but demanding our rightful place in shaping financial systems,” he stated.

He called for courage in pursuing structural reforms, declaring that “Africa’s prosperity hinges on transforming debt from a crisis into capacity.”